ADX Energy's Lichtenberg-1 Gas Exploration Well: Progress and Potential
ADX (ADX) Share Update October 2024 Monday 21st
ADX Energy Advances Lichtenberg-1 Gas Exploration with Promising Drilling Progress
ADX Energy Ltd (ASX: ADX) has announced promising progress on its Lichtenberg-1 gas exploration well located in Upper Austria, as drilling operations continue to advance smoothly.
Instant Summary:
- Lichtenberg-1 well spudded on September 26, 2024, in Upper Austria.
- Current drilling depth reached 2140 meters, targeting a total depth of 2900 meters.
- ADX holds a 50% economic interest in the well, with potential for high productivity.
- Targeting Upper Oligocene sandstone reservoirs known for high production rates.
- Successful drilling could lead to the development of a large reserve base.
Drilling Progress
The Lichtenberg-1 gas exploration well, operated by ADX Energy Ltd, was spudded on September 26, 2024, using the RED Drilling & Services GmbH E-202 rig. As of October 21, 2024, the well has reached a depth of 2140 meters, with operations proceeding to drill to a total planned depth of 2900 meters.
The well targets Upper Oligocene sandstone reservoirs, which have shown high productivity in nearby offset wells. The primary reservoir is expected to be encountered at approximately 2500 meters, with the drilling expected to take around 30 days to complete.
Operational Details
Recent operations have included logging the well in an 8 ½ inch hole, cementing a 7-inch casing, and setting up for drilling in a 6-inch hole. The drilling operations are progressing smoothly, with the well poised to reach its target depth soon.
Future Prospects
ADX Energy holds a 50% economic interest in the well, with the potential to develop a large reserve base if the drilling is successful. The Lichtenberg prospect is part of a broader exploration strategy in the ADX-AT-I licence area, which includes several follow-up prospects covered by high-quality 3D seismic data.
The successful drilling of Lichtenberg-1 could significantly enhance ADX Energy's reserve base and production potential. The proximity of gas pipelines to the well site could facilitate rapid and cost-effective development, boosting investor confidence and potentially increasing the company's stock value.
Investor Reaction:
Analysts are likely to view the progress on Lichtenberg-1 positively, given the potential for high production rates from the targeted reservoirs. The strategic location and existing infrastructure support a favorable outlook for future development.
Conclusion:
Investors should keep a close watch on the weekly updates from ADX Energy, as the successful completion of the Lichtenberg-1 well could mark a significant milestone in the company's exploration efforts. The potential for further exploration and development in the area presents a promising opportunity for long-term growth.